“CETO has in initial operational testing successfully transmitted high-pressure seawater to shore at in excess of 500psi,” Renewable Energy Holdings (REH) said yesterday.

“This pressure is within the design parameters required to generate electricity onshore using conventional hydro electric power turbines.

“Although testing will be ongoing, the directors now consider the underlying principles of the technology as proven and are considering how best to take the process of design for commercialisation and production engineering forward. REH will also now be actively looking for a first commercial development site offshore in the UK or Ireland.”

CETO was designed and developed by Western Australian company Seapower Pacific, which was acquired by London-listed Renewable Energy Holdings in February, just before the device’s launch in March.

The CETO wave energy prototype is housed in a 20 metre steel hull deployed in about eight metres of water close to shore.

The CETO device is installed on the seabed below the level of turbulence and is designed to efficiently capture energy from the full water column generated by the passing of a wave.

This energy is then transmitted to shore as high-pressure seawater, using proprietary seawater pumps.

Electricity will be generated on land using existing proven technology, REH said.

CETO can also be used to produce desalinised water at the same time as generating power.

The wave energy converters will be anchored permanently to the sea floor to protect against storms and other ocean forces.

REH floated on AIM on February 11 this year, raising £10 million (before expenses) by way of a placing with institutional and other investors.